DELAY ANALYSIS IN CONSTRUCTION CONTRACTS

Delay notices are an important part of construction contracts because they help to ensure that all parties are aware of any delays that may occur during the course of a project. This information can be crucial for ensuring that the project stays on track and that any necessary adjustments are made in a timely manner. Delay notices are an important tool for managing and mitigating potential delays in construction projects. Per the FIDIC Silver Book, the below is the timeline from the time the Notice of Delay is issued: 1. Notice of delay: The contractor must notify the employer in writing within 14 days of becoming aware of any delay to the works. 2. Extension of time: If the contractor believes that they are entitled to an extension of time due to the delay, they must notify the employer in writing within 28 days of becoming aware of the delay. 3. Reasons for delay: The contractor must provide detailed reasons for the delay, including any mitigating circumstances and any actions taken to minimize the impact of the delay. 4. Documentation: The contractor must provide supporting documentation, such as reports from the project team, to support their claim for an EOT. 5. Claim for loss and expense: If the delay has resulted in additional costs for the contractor, they may make a claim for loss and expense in accordance with the terms of the contract. 6. Time for review: The employer must review the contractor's notice of delay and extension of time claim within 28 days of receiving it. 7. Decision on extension of time: The employer must notify the contractor in writing of their decision on the extension of time claim within 14 days of completing their review. 8. Payment: If the extension of time is granted, the contractor is entitled to payment for any additional costs incurred as a result of the delay. Note that no Automatic entitlement exists. The Main Causes of rejection of Rejection of the Delay notices are also summarised below: 1. Non-compliance with the contract terms and conditions 2. Failure to submit a valid claim within the specified time frame 3. Lack of supporting documentation for the claim 4. Unreasonable or excessive delay in carrying out the work 5. Failure to provide adequate notice of delay or disruption to the employer 6. Failure to take appropriate remedial measures to avoid or mitigate the delay 7. Failure to cooperate with the employer or other contractors in addressing the delay 8. Failure to provide a realistic and achievable schedule for completion of the work. If correctly applied, delay notices can help to protect the rights and interests of all parties involved in the project by clearly outlining the causes of the delay and any potential remedies that may be available. Concurrent Delay Analysis Concurrent delay analysis is the process of determining whether delays to a construction project are due to multiple causes, and apportioning responsibility for those delays among the parties involved. This process is often used in disputes under FIDIC (International Federation of Consulting Engineers) contract terms, where there is a dispute over whether delays were caused by the employer, the contractor, or a combination of both. The main problems associated with concurrent delay analysis under FIDIC/Bespoke contract terms are: 1. Determining causation: In order to apportion responsibility for delays, it is necessary to determine the cause(s) of the delay. This can be challenging, especially when there are multiple causes of delay, or when the cause is not immediately apparent. 2. Identifying the responsible party: Once the cause(s) of the delay have been determined, it is necessary to identify which party is responsible for the delay. This can be difficult, especially when the delay is due to multiple causes, or when the cause is not clearly the fault of a specific party. 3. Apportioning responsibility: Even when the cause of the delay and the responsible party have been identified, apportioning responsibility for the delay can be complex and contentious. This is particularly true when the delay is due to multiple causes, or when the cause is not clearly the fault of a specific party. 4. Dispute resolution: Disputes over concurrent delay analysis can be difficult to resolve, particularly when the parties involved do not agree on the cause(s) of the delay, the responsible party, or the apportionment of responsibility. This can lead to lengthy and costly disputes, which can significantly impact the overall success of the construction project. How to avoid problems in concurrent delays: 1. Clearly define the contract terms and conditions, including the roles and responsibilities of all parties involved in the project. 2. Establish a clear communication and reporting system to ensure timely and accurate information is shared between all parties. Implement a risk management plan to identify and mitigate potential delays and disruptions. 3. Use a project scheduling software to monitor the progress of the project and identify potential delays in real-time. 4. Engage independent experts, such as quantity surveyors, to assess and validate any claims for concurrent delays. 5. Conduct regular meetings and progress reviews to ensure that all parties are working towards the same goals and objectives. 6. Use alternative dispute resolution methods, such as mediation or arbitration, to resolve any disputes or conflicts that may arise. 7. Take proactive steps to prevent concurrent delays, such as engaging subcontractors early on in the project and setting realistic timelines for completion.